Thoughts from Myron—Rare Earths, Colored Diamonds and Graphite
by takeprofits | November 2, 2013 7:55 am
More junior stock thoughts from our guest columnist
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Source URL: https://www.stockgumshoe.com/2013/11/microblog-thoughts-from-myron-rare-earths-colored-diamonds-and-graphite/
What about United Rare Earth (UREE)? They have large acreage of rare earths & thorium in U.S. Trading around $2.00, have major names on board.
Checked out their website briefly Robt. and conclude this is a very early stage company not yet listed on a major exchange, probably WHY it had not yet caught my attention.
Was unable to register on their website for updates, but I would have to know a lot more about this company than what is revealed on their website and see some solid progress of their development plan before considering it for an investment. Compared to TRER and ENERGIZER briefly profiled below, I fail to see anything about UREE that would make me want to pay $2.00 a share, unless I am missing something?
Is there any environmental concerns regarding Mason’s graphite project? Thanks!
None that I am aware of. Que . is a excellent mining jurisdiction and Mason has a very competent management team that has my full confidence will always act for the best interest of shareholders and the environment.
I know uk isnt your thing, but there’s a supposedly high quality flake graphite company mining in Madagascar called Stratmin Global: STRG.L and its rotten cheap (Maybe for good reason) but they made their first delivery feb 13 to the US. Anything on your radar?
Thanks for weighing in with that information Alan, being London listed I had not run across the company, however I have been aware for years of Madagascar as a graphite source.
Check this out: http://www.energizerresources.com. a company I dabbled in years ago and made some money and recently bought back in because they seem to finally be making some serious progress and are approaching a late development stage that may lead to a “bankable feasibility study” which is usually the final step before a positive mine development decision is made. ENERGIZER RESOURCES is listed in Canada as EGZ-V and in U.S. on the OTCQX as ENZR and at about .15 is pretty cheap for an advanced stage company. They have already made a deal with Caterpillar for mining equipment and most importantly, just bought out their J/V partner which interestingly enough is listed on the ASX.That company is MALAGASY MINERALS ASX/MGY and apparently they also retain some interests in another project in Madagascar, something you can probably research and report on. They are apparently also retaining a 1.5% net smelter royalty on selling their 25% interest in Energizer’s MOLO project, which is a massive 94,011 Hectares with only about 1% so far explored for immediate development.
Would probably have written it up in future and may still do so, but at least it is out there for subscribers to research on their own.
ps
‘As previously announced, a complete metallurgy review is underway at SGS and recently appointed Mintek, both under the guidance of Promet Dadi, the Company’s technical partner. The Company’s technical team will, through the result led solutions from the test-work, continue to identify and upgrade plant performance.
The first metallurgical test work was carried out on 20kgs of material from Mining Block 1 of the Lohorano property. Bench scale flotation test-work (simulating the existing Lohorano plant) achieved a maximum product grade of 86% carbon and an average grade of 82%. At the time additional gravity separation test-work was conducted on this concentrate in the laboratory using technology not currently available at the Lohorano plant and achieved a product with 92% carbon with 90% of the flakes at +70 mesh. These preliminary results are subject to further test work. It is anticipated that the results of the further test work which will include details of the potential recovery rates will be announced shortly.
Myron Martin.
You mentioned you had the name of the wholesaler of the colored diamonds in Canada. Would you please post it. I have to get my dollars into something solid.
Thanks.
Myron, do you no longer own UEC? I wasn’t quite sure from your comment above. And, do know that your hard work is very much appreciated.
Yes Vicki I still own UEC and highly regard the CEO Amir Adnani who I consider to be one of the saviest company developers in the current mining sector, which is why I also endorsed his other up and coming company Brazil Resources BRI with e excellent gold projects in Brazil.
I would be interested in your assessment of Focus Graphite as I’ve increased my holdings in this company and they appeared to be one of the “cutting-edge” early entrants into the graphite and graphene space. But their stock price has continued to drop even though they, along with NOG, will be one of the first to enter into the graphene arena.
I agree with your assessment of Focus being a “cutting edge early entrant” and it was my first venture into the sector. Took some profits while it was rising but am still holding a small position as I believe that focus will have an ultimately good payoff. Juniors go through these cycles of development and I don’t think the current price drop is anything to worry about long term. That being said, new players like Mason may well offer greater immediate return as they capture development interest from newer investors in the space and trigger an initial run while Focus may have to reach certain milestones in development before resuming its upwards run.
Myron,
It is best to stay away from Politics when you are talking of investments. I probably worry more about people trying to shut the government down. Not that I worry less about the Administration spying. That said, please focus on investment only. Appreciate your good work.
It would have been helpful if you had mentioned a specific reference that triggered your response so I could address it. I really don’t care which party is in power, a pox on both of their houses, I am not a political partisan at all. However, it is very difficult to separate politics from investment because what politicians DO, (in collusion with bankers who financed their campaigns) very much affect investment considerations in various sectors from time to time.
I would go so far as to say it would be very difficult to be a successful investor UNLESS you keep abreast of political issues on a world scale.
Jagadish: Myron writes what Myron writes. You should try to remember, you are not the only reader….others may find it (whatever ‘it’ is) very relevant. Like the TV, you always have the option of switching off if you don’t like the show.
I bought BXE when it was 6.62 few months back and it’s been doing great.
Good for you John, hope lots of others did as well. This should be a winner for the for-see-able future as are numerous other earlier picks, currently the best runner has been REEDS Ginger Brews and I am researching another “health food stock” that looks promising.
Myron: I have been acquiring one of your old favorites, REE, around $1.70. Seems like a lot of big news to me. Appointing 2 new directors with knowledge of minerals and mining including Steve Mooney of Thompson Creek. Also, they appear to have a new process for separating rare earths with greater recovery, higher purity and lower cost. The only negative which drove prices down was a secondary offering which doesn’t bother me too much. If fully exercised, the dilution would be about 12 percent total at prices between $2.49 and $4.15 per share. If the price does not reach $2.49 within six weeks, the dilution would only be 8% as it would be cheaper for the private placement investor to buy shares in the open market and give up the right to the the additional 4%. If the stock doesn’t reach $4.15 in 3 years, the dilution would only be 5% as the buyer would not exercise options at that price as the open market would be lower. Am I wrong or does $1.70 look reasonable for expected prices from a fund willing to bet $8 million that these price increases will occur between 2 months and 3 years?
Sorry I somehow missed your post John. In the average month I get anywhere from 1000 to 1200 behind and only find things I missed when I clean up my computer on weekends when the deluge slows down. You have assessed Rare Element resources quite well and I would be buying except for the fact that I have other immediate priorities that trump it.
I think buying REE in the $1.50 to $2,00. range should be very safe and quite profitable a few years down the road.
Been buying and my average price is now $1.66 I would have bought more but I ran out of money as the price dropped to $1.45. The price is not yet going up, but the good news keeps pouring out as they just got total community support for their project and requests for the government to expedite all permitting processes.
Myron, thanks a lot for your hard work and taking your time to share some insight with the rest of us. I greatly enjoy reading your articles and bought into BXE after reading one of your posts over the summer and doing some due diligence. The prospects for Mason Graphite are intriguing to say the least, do you have any idea why it has been on a downward trend the past year or so? Are you thinking now is a good entry point for Mason? Also Alan’s post about stratmin global…. Any relation to the stratmin graphite that Benoit gascon headed before selling to Imerys?
Mason Graphite did well on initial listing but like hundreds of other juniors got sold down in a negative market phase which may be starting to turn. At current prices I think it represents a very good buy in then graphite space.
As the price plummeted, I kept buying. My average price is $.28. I carefully evaluate all of the stocks and place them on a wish list with acceptable prices. If I almost bought this at 50 cents, why should I be scared of a drop in prices if I have resources to buy. I almost bought REE at $2.00 so was not scared to keep on buying as it dropped. I only hope REE performs as well as Mason.
An update on Mason….
December 5, 2013 -Mason Graphite reports 658% increase in measured and indicated mineral resources to 50 million tonnes,
And from Nov 18 – “Mason Graphite’s (CVE:LLG) executive VP and CFO, Luc Veilleux, has been aggressively buying up the company’s stock as the junior graphite explorer continues to advance its flagship Lac Guéret project at a remarkable pace.
The management exec bought up 55,000 Mason shares in the public market last week. This is on top of the 88,636 company shares he has acquired since August of this year.” http://www.proactiveinvestors.com/companies/news/49936/mason-graphite-cfo-buys-up-more-company-shares-49936.html
This page has been left open on my computer since Myron wrote it, but just got to reading it today (I’m still trying to digest all of it). I think I’ll write up some stink bids this afternoon, however, with 650% of previous reserves, maybe it’s worth the $0.50 right now.
Comments?
As I keep repeating, nobody knows where the exact bottom is, but unless a nuclear war wipes out millions of people the demand for energy and commodities to make essential goods for a growing world wide expanding middle class will eventually see a turnaround in sentiment.
Now if the government would go take a l. o n. g holiday and stop interfering with the free market and concentrate on having the regulatory authorities doing the job they were mandated to perform a whole bunch of bankers would go to jail instead of paying a fine for their repeated white collar crimes.
Recent report on Mason Graphite (LLG.v). It’s spiked up nicely into >$0.65…. I wish I had got in at $0.30, not 0.50, but I’m happy to hold this for a while anyway. Will buy on dips again….
Myron – any thoughts on how the pre-production pricing may play out? I don’t believe this recent spike is hype – I think the stock is heading for a fairer valuation.
http://seekingalpha.com/article/1918171-mason-graphite-graphene-revolution-lithium-ion-battery-growth-and-china-supply-woes-offer-a-compelling-opportunity
Hi Myron
Ive just had a pump and dump re tungsten. Ignoring that idiotic ticker, the metal does seem in short supply. Any thoughts about where to look?
Hi Alan: Sorry to hear you fell for a “pump and dump” wish you had named it for the edification of others who might be vulnerable. There are a lot of them out there and you never know where these shysters might strike next. I do have a number of tungsten stocks in my critical and specialty metals portfolio, and watch list. I agree, the market is expanding and there is money to be made investing in the right companies at the right time. I am in the midst of editing my column for the weekend and have a local investment Club meeting to-night so I am too busy to just give you something off the top of my head, but be assured their will be a tungsten focussed company profiled in the near future.